North Carolina Down Payment Assistance Programs

Payments Gateway - These systems are the Mortgage Credit Certificate and the Down Payment Assistance System.

You also purchase a property between January 1, 2009 and December 1, 2009 and if you meet the requirements for one of these programs, you could also be eligible for the $8,000 tax credit merely enacted into law.

First, who's a First Time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a home in the prior three years. It is exactly the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with average and low incomes. All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability depending on a portion of the mortgage interest that you pay.

If you are eligible for the MCC, you'll be able to claim 20% of the interest you pay as a credit in your federal income taxes. You are able to save up to .

You will have the ability to join this with the $8,000 tax credit if you do qualify for 2009, for the MCC. This could reduce a buyer's tax liability by $10,000.

Who qualifies for an MCC is based on your own income and also the cost of the house you're buying. Household income is defined as the “gross income of the mortgagor and every other individual anticipated to live in the dwelling who's 18 years of age or older.”

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

MCC Income Limitations 1 Individual $61,500 2 Men $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limits New Home $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

The buyer just needs to pay and the load would pay around .

This plan has more stringent income limits than the MCC program outlined above. Like the MCC program, it might be used together with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, however, can not be used in conjunction with all the MCC. That is an either or scenario.

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Support Sales Price Limits New Home $210,000 Existing Residence $210,000